According to the April 3 research report of Huajin Securities, the short drama application industry continues to grow, and the characteristics of user groups are gradually showing.
The short drama application industry complements the reach gap for long and short video users, and the penetration of young people is superior to online video and short video platforms; at the same time, the coverage of short dramas in low-tier cities is higher than online video.
At the same time, the Douyin applet, whose main content is skit, has gained over 80 million users and has become the main constituent channel for the skit application industry.
The Matthew effect is beginning to show in the skit application industry, with platforms below one million levels accounting for more than 60%.
Various types of online audiovisual works complement each other to meet user needs, and focusing on the quality of video content helps build an industry ecosystem.
Changjiang Securities released a research report saying that the 2023 Spring Festival skit market is hot, with a daily consumption of about 80-90 million yuan, and the total consumption is estimated at 800 million yuan. Supply in the short drama market grew rationally in 2023, and the filing volume increased by 9%; the number of monthly active users on the demand side was nearly 150 million, an increase of 782.8% over the previous year. The bank believes that AI technology innovation promotes skit creation, and Sora, the Wensheng video tool released by OpenAI, can generate videos up to 60 seconds at once and switch between multiple angles seamlessly. For short dramas, especially short dramas with small programs with a single episode length of 1-2 minutes, the length of video that Sora can generate is a natural fit. It is recommended to focus on AI+IP/film and television investment opportunities.
Short drama-related concept companies:
Ling Meng Film and Television (09857): Ning Meng is a scarce domestic content company with a stable production of leading copyrighted dramas. Popular series account for 70%, Douban accounts for 40% or more, and original screenplays account for 50%. Every year in 2017-2023, at least one copyrighted drama ranked in the top 30 broadcasts in the entire network. Therefore, the revenue and profit margin of individual episodes of Ning Meng's copyrighted dramas are at the leading level in the industry, achieving 100% pre-sale. In 2024, the company plans to launch 16 long drama projects. The systematic content development process and rich copyright project reserves have laid a solid foundation for the company to increase production capacity in the future.
Reading Group (00772): Reading's overseas business process is also progressing. The overseas reading platform WebNovel provides about 3,800 Chinese-translated works and about 620,000 original local works.
Weimeng Group (02013): Weimeng Group recently announced that its subsidiary Shanghai League is seeking to acquire a total of 53.5% of Bibimbap Technology's shares through equity transfers and capital increases, with a total consideration of RMB 31 million. This transaction is expected to help Weimeng Group quickly build a short drama ecosystem for the entire industry chain, thereby seizing the next “systemic industrial opportunity”.
Ying Yu (03700): In recent years, short dramas have rapidly become popular on various platforms. Hainan Hengshi is a 100% subsidiary of Beijing Millywood, which is a studio vest belonging to Yingyu. The second place is “The Brightest Star in the Night Sky”, which is associated with Mikuang Shengshi, and is also a skit studio under the Yinguniverse.